Types of Valuations You Can Make Available to Buyers

 

Buyers specify how they value bandwidth by entering price and quantity in fields in the valuation window. There are a variety of methods of Buyer valuation, but your administrator configures which are available to each buyer.

For a complete description of Buyer valuations, see Merkato Buyer Reference Manual, “Valuations Overview.”

Buyer valuations include the following:

Traffic Based Bidding (For Any Type of Valuation)

Traffic Based Bidding works with any of the types of valuation listed below. If Traffic Based Bidding is enabled for a valuation, a separate tab appears in that valuation’s window.

Enable Traffic-based bidding by selecting the Active check box. If Traffic-based is enabled, the Buyer agent changes the maximum quantity in its valuation by checking the usage at intervals.

Quick Response Bidding (For Any Type of Valuation)

If Quick Response Bidding is enabled for a valuation, a separate tab appears in that valuation’s window, as shown. When Quick Response is enabled the Buyer agent reacts to bursts of traffic according to the values in two fields: When Merkato detects a level of traffic that exceeds the Traffic Treshold, the Buyer agent changes the amount in its Minimum Quantity field to the amount you enter in the Est. Peak Traffic field, plus a Quantity Margin.

Budget Valuation

The agent places the same value on all units of bandwidth offered for auction, based on a total budget.

Budget Valuation with Limits

The agent places the same value on all units of bandwidth offered for auction, based on a total budget. Buyers set the minimum and maximum bandwidth for which they will bid.

Linear Valuation

Bidding is at a constant unit price regardless of the quantity. This is similar to a take-it-or-leave-it bid. Buyers may get less quantity than they ask for, but the unit price will never exceed what they offer.

Square Root Valuation

Similar to budget valuation except buyers lower the total cost they are willing to pay as bandwidth decreases.

Logarithmic Valuation

Buyers can use this valuation if they wish to bid aggressively at a mid-point in the quantity range and less aggressively for higher or lower amounts. The agent using this valuation bids most aggressively at 37% of the maximum quantity specified.

Parabolic Valuation

Buyers can use this valuation if they wish to bid aggressively at a mid-point in the quantity range and less aggressively for higher or lower amounts. The agent using this valuation bids most aggressively at 50% of the maximum quantity specified.